What is the entry for the claim recovered from fire insurance?

by Philip Kahoro
(Nairobi, Kenya)

Q: In the case of claim receivable from Insurance for stock stolen from a shop, where would the credit be posted and under what group of accounts in Tally?

A: The journal entries for an insurance claim are generally:

DR Insurance company (receivable/debtor)
CR Insurance received (income)
Insurance claim approved

DR Bank
CR Insurance company (receivable/debtor)
Insurance company pays out

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